SECTION 1 (TITLE):
This act shall be known as the Grow Jobs Through Employee Ownership Act.

SECTION 2 (PURPOSE):
This act supports the growth and expansion of employee-owned businesses which create jobs, wage increases and economic growth.

SECTION 3 (PROVISIONS):

(a) State-university-based center for employee ownership. The Chancellor/Director of the STATE University System is hereby directed to, within 100 days of the effective date of this legislation, establish a state-university-based Center for Employee Ownership, “the Center.” The Center shall:

(b) Tax incentive for employee-owned businesses. There is hereby added to the list of deductions from gross income under the tax law a deduction for [50%] of the gains from sale of a business to employees or conversion of a business to employee-ownership, if after the transfer (a) employees or a qualified ESOP own at least 50% of all outstanding securities issued by the corporation after completion of the transaction and the corporation is domiciled in STATE.

(c) Ensure state laws encourage the creation of employee-owned businesses. The Department of [State/Economic Development] in cooperation with the Center established in section (a) above, is hereby directed to, within 100 days of the effective date of this legislation, issue a public report, delivered to the Governor and Legislature and made available on its website, assessing whether there is a need for changes to the corporation, tax, or other laws of STATE to facilitate the creation or expansion of employee-owned businesses in STATE.